This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the idea that because consumers are free to purchase what they want and to refuse products they do not want, they have the ultimate control over what is produced. A) Specialization. B) Consumer Sovereignty. C) Voluntary Exchange. D) Capitalism. Show Answer Correct Answer: B) Consumer Sovereignty. 2. Under capitalist economies, the answer to the fundamental questions-what, how and for whom to produce are obtained by- A) Government regulation. B) Cost benefit analysis. C) Market forces of demand and supply. D) All of the above. Show Answer Correct Answer: C) Market forces of demand and supply. 3. An audit examines whether a firm's financial statement conforms to generally accepted accounting principles. A) True. B) False. Show Answer Correct Answer: A) True. 4. Businesses need to make a profit in order to stay open. A) True. B) False. Show Answer Correct Answer: A) True. 5. Which of the following is a factor of production? A) Dental treatment. B) Wages. C) Birthday card. D) Enterprise. Show Answer Correct Answer: D) Enterprise. 6. Which one of the following is an example of an external economy of scale? A) Bulk buying. B) Skilled labour. C) Bureaucracy. D) Managerial. Show Answer Correct Answer: B) Skilled labour. 7. The ..... of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another. A) Trade-off. B) Opportunity Cost. C) Cost-Benefit Analysis. D) Marginal Cost. Show Answer Correct Answer: B) Opportunity Cost. 8. Which of the following best describes an oligopoly? A) Many monopolistically competitive firms. B) A few firms sharing monopoly power. C) A former monopoly that has been broken up by the government. D) A government-granted franchise or monopoly. Show Answer Correct Answer: B) A few firms sharing monopoly power. 9. The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision? A) Vacation. B) Swimming pool. Show Answer Correct Answer: A) Vacation. 10. Which of these is NOT an example of a need? A) Water. B) Food. C) Watch. D) Shelter. Show Answer Correct Answer: C) Watch. 11. The automotive industry is known for being highly competitive. Companies invest heavily in research and development to create cars that appeal to consumers.Which of the following forms of market is most likely to be observed in the automotive industry? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 12. Investments made by MNCs are termed as: A) Indigenous investment. B) Foreign investment. C) Entrepreneur's investment. D) None of the above. Show Answer Correct Answer: B) Foreign investment. 13. This type of business sells products directly to consumers. A) Manufacturing. B) Wholesale. C) Retail. D) Service. Show Answer Correct Answer: C) Retail. 14. When the demand for a product has a large drop-off because the price of the product increases, this is called A) Price stretch. B) Price bounce. C) Price elasticity. D) Price inelasticity. Show Answer Correct Answer: C) Price elasticity. 15. Which of the following is not a feature of a Multi-National Company? A) It owns/controls production in more than one nation. B) It employs labour only from its own country. C) It organises production in complex ways. D) It sets up factories where it is close to the marke. Show Answer Correct Answer: B) It employs labour only from its own country. 16. The discriminating monopoly can be categorized as ..... A) Personal. B) Place. C) Use. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Demand Forecasting is also known as ..... Forecasting A) Sales. B) Production. C) Quantity. D) None of above. Show Answer Correct Answer: A) Sales. 18. Which of the following is not a benefit of green revolution? A) Increase in marketed surplus. B) Increase in price of food grains. C) Buffer stock. D) Self-sufficiency. Show Answer Correct Answer: B) Increase in price of food grains. 19. A reserve is: A) A charge of estimated expenses. B) An appropriation of profit for a specific purpose. C) The distribution of profits to shareholders. D) The amount of net income left over for the business after it has paid out dividends to its shareholders. Show Answer Correct Answer: B) An appropriation of profit for a specific purpose. 20. Cross elasticity of demand for complementary goods is A) Negative. B) Positive. C) Zero. D) One. Show Answer Correct Answer: A) Negative. ← PreviousNext →Related QuizzesEconomics QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books